AGM australian governance & ethical index fund

I got this fromm SS.Sent an email to AGM and am posting the...

  1. 1,052 Posts.
    I got this fromm SS.
    Sent an email to AGM and am posting the reply from the CEO below. Hope this helps.
    It has cleared things up for me.

    Nickel at Avebury occurs as a nickel-iron sulphide mineral called
    Pentlandite which we recover from the rock by fine grinding and
    floating-off the sulphides (which stick to detergent bubbles and float
    as a froth). This concentrates the nickel into a pile of nickel sulphide
    dust which is called "Nickel Concentrate".

    We then sell that concentrate to Jinchuan's huge nickel smelter in China
    which burns off the sulphur (recovered as sulphuric acid for car
    batteries) and forms a nickel-iron alloy called "matte".

    Jinchuan then dissolves the matte in acid, passes an electric current
    through the solution and precipitates pure nickel metal onto the anode.

    So, if Jinchuan wants to sell 7,000 tonnes of nickel, it needs to buy,
    say, 7,100 tonnes of nickel-in-concentrates from mines like us.

    We have no plans of going into metal production - we sell
    nickel-in-concentrates to nickel smelters - our price is a simple and
    high proportion of the market price for nickel prevailing at the time of
    sale.

    Hope this helps,

    Ian Levy
    CEO

    Wow now i"m even more bullish on AGM, as i can now see much clearer how much money we will be making .
 
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